Australia has reaffirmed its position on lowering carbon emissions following Monday’s announcement that it was committing 300 million Australian Dollars into Hydrogen energy projects.

Australia is currently able to produce Hydrogen at a cost of approximately A$7 per kilogram, a cost that means hydrogen is not able to compete with more traditional fuel sources. Speaking at the funding announcement however Energy and Emissions Reduction Minister Angus Taylor said the goal was to get the production cost to around the A$2 mark, in order to ensure the establishment of a competitive industry.

Speaking to Reuters he said, “If we can get hydrogen produced at under A$2 a kilogram, it will be able to play a role in our domestic energy mix to bring down energy prices and keep the lights on.”

Clean Energy Finance Corporation to administer cash

His thought were underscored by CEO of the Clean Energy Finance Corporation, Ian Learmonth who added, “We see green hydrogen as offering the most credible pathway to decarbonisation for high emitting sectors.”

It will fall to Learmonth’s CEFC to administer the A$300 million fund which will be known as The Advancing Hydrogen Fund. The funds primary objective will be to finance initiatives that will help the government meet its carbon emission targets while at the same time building a sustainable hydrogen industry that will create jobs and add real value to the economy.